TSX outperforms despite oil decline
Canada’s main stock market index managed to close higher Friday while most of the rest of the world’s markets reported losses. The narrow gains came despite further decline in oil prices and global economic concerns.
Wall Street closed sharply lower with oil the dominant drag. Asian and European markets also closed with losses but many closed higher for the week following the Fed’s interest rate decision which removed one element of uncertainty.
The S&P/TSX Composite Index closed up 14.37 (0.11 per cent)
The Dow Jones closed down 367.4 (2.10 per cent)
Oil is trending lower (Brent $36.68, WTI $34.54 at 4.50pm)
Gold is trending higher (1065.40 at 4.50pm)
The loonie is valued at U$0.7170
Inflation rose in November
Statistics Canada reported Friday that The Consumer Price Index rose 1.4 per cent in the 12 months to November, after increasing 1.0 per cent in October. Gasoline prices continued to moderate the year-over-year rise in the CPI in November, but to a lesser extent than in October. In November, the gasoline index was down 10.6 per cent year-over-year compared with a 17.1 per cent decrease in the previous month.
100,000 oil industry jobs lost in 2015
The oil and gas industry will have lost 100,000 jobs by the end of 2015 according to the president of the Canadian Association of Petroleum Producers. Tim McMillan said that it was a time of concern and that Canada should be looking to forge its own path in the international oil sector. His comments followed a vote by US lawmakers that a ban on exporting US crude should be lifted. The Financial Post reports that McMillan is urging Canada’s oil industry to be less reliant on the US to “control our own destiny.”
Wholesale trade lower in October
Wholesale sales declined 0.6 per cent to $54.7 billion in October, a fourth consecutive decrease. Statistics Canada says that declines were recorded in four subsectors, led by lower sales in the food, beverage and tobacco and the motor vehicle and parts subsectors. In volume terms, wholesale sales decreased 0.6 per cent in October.